When it comes to understanding the intricacies of the global marketplace and international business, an essential resource is the textbook “International Business Competing in the Global Marketplace 11th Edition” by Dr. Charles W. L. Hill. This comprehensive book delves into various aspects of international business, providing valuable insights into how companies compete on a global scale.<\/p>\n

The 11th edition of “International Business Competing in the Global Marketplace” covers Chapter 12, which focuses on “The Global Capital Market.” This chapter discusses the role of capital markets in bringing together investors and borrowers, the different types of financial instruments available, and the advantages of accessing the global capital market for investment opportunities.<\/p>\n

Here are some true\/false questions related to Chapter 12:<\/p>\n

1. A capital market brings together people who want to invest money and individuals who want to borrow money. (True)
\n2. An investor purchases the right to receive a specified fixed stream of income from the firm when he purchases a share of stock. (True)
\n3. Debt loans include money loans from banks and funds raised from the sale of company bonds to investors. (True)
\n4. The value of capital is the difference between the cost of inputs and outputs. (False)
\n5. By using the global capital market, investors have a much wider range of investment options than in a purely domestic capital market. (True)
\n6. Investors can reduce the level of risk by diversifying a portfolio internationally. (True)
\n7. The relatively low correlation between the movements of stock markets in different countries indicates that countries face different economic conditions. (True)
\n8. Using floating exchange rates can help countries reduce the risk of investing in foreign assets. (True)
\n9. Financial services is an information-intensive industry. (True)
\n10. Global capital markets often lack information about the underlying quality of international investments. (True)<\/p>\n

**FAQs**<\/p>\n

**1. What is a capital market?**
\nA capital market is a financial market where individuals and institutions trade financial securities such as stocks and bonds. It brings together investors who are looking to invest their money and borrowers who are seeking capital.<\/p>\n

**2. How can investors reduce risk in the global capital market?**
\nInvestors can reduce risk by diversifying their portfolio internationally, taking advantage of the low correlation between stock markets in different countries.<\/p>\n

**3. What role do floating exchange rates play in the global capital market?**
\nFloating exchange rates can help countries reduce the risk of investing in foreign assets by allowing for market-driven adjustments in currency values.<\/p>\n

**Conclusion**<\/p>\n

Understanding the dynamics of the global capital market is crucial for businesses and investors looking to expand their international footprint. The textbook “International Business Competing in the Global Marketplace 11th Edition” provides valuable insights into how capital markets operate on a global scale, offering a comprehensive resource for those looking to navigate the complexities of international business. By mastering the concepts covered in Chapter 12, readers can gain a deeper understanding of how global capital markets function and the opportunities they present for investment and growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

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